/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/190305.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Tuesday, March 5, 2019, Vol. 20, No. 46 Headlines B R A Z I L ODEBRECHT SA: Bondholders Offer Debt Relief Plan SMAR EQUIPAMENTOS: Chapter 15 Case Summary C A Y M A N I S L A N D S OCEAN RIG: Oral Argument on Investor Appeal Scheduled for March 14 D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Implements IMF's Enhanced e-GDDs System DOMINICAN REPUBLIC: Industries Discard 30% Hike to Minimum Wage E C U A D O R INTERNATIONAL AIRPORT: Fitch to Rate Sr. Secured Notes 'B(EXP)' J A M A I C A JAMAICA: Will be Good After IMF, Says EPOC Official P U E R T O R I C O REMLIW INC: Case Summary & 3 Unsecured Creditors T R I N I D A D A N D T O B A G O LIAT: Facing Financial Problems Again V E N E Z U E L A PETROLEOS DE VENEZUELA: Ordered to Move Lisbon Office to Moscow VENEZUELA: Guaido Calls for Protests Ahead of Return - - - - - =========== B R A Z I L =========== ODEBRECHT SA: Bondholders Offer Debt Relief Plan ------------------------------------------------ Edith Moy at Bloomberg News reports that creditors of Odebrecht SA's engineering and construction division holding more than $1 billion of the Brazilian company's bonds said they have proposed a debt restructuring, including a four-year extension of maturity. Odebrecht hasn't responded yet to the proposal the creditor group said in a statement, according to Bloomberg News. The company was said in December to be running out of collateral it can pledge to creditors of its scandal-plagued construction unit, Bloomberg News says. The subsidiary, Odebrecht Engenharia e Construcao SA, said in November that it will restructure debt after missing a coupon payment, Bloomberg News relays. Key terms of the proposal include: -- a four-year maturity extension, along with the ability to pay all interest in kind through 2021 at the company's option in order to preserve cash -- no reduction in principal amount, no impairment of the equity interests of Odebrecht -- other terms such as an enhanced covenant package, including prohibition on dividends and other restricted payments until notes have been fully repaid, and a guarantee from Odebrecht and liens on certain assets, including shares of Braskem The company was planning to ask bondholders to accept losses of more than 70 percent as part of a restructuring of about $3 billion in outstanding bonds, Reuters reported last month, Bloomberg News relates. About Odebrecht SA Construtora Norberto Odebrecht SA is a Latin American engineering and construction company fully owned by the Odebrecht Group, one of the 10 largest Brazilian private groups. Construtora Norberto is the world's largest builder of hydroelectric plants, of sanitary and storm sewers, water treatment and desalination plants, transmission lines and aqueducts. The Group's main businesses are heavy engineering and construction based in Rio de Janeiro, Brazil, and Braskem S.A., its chemicals/petrochemicals company, based in Sao Paulo, Brazil. As of May 5, 2009, the company continues to carry Standard and Poor's BB Issuer Credit ratings, and Fitch Rating's BB+ Issuer Default ratings and BB+ Senior Unsecured Debt ratings. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 2, 2016, The Wall Street Journal related that Marcelo Odebrecht, the jailed former head of Brazilian construction giant Odebrecht SA, agreed to sign a plea-bargain agreement in connection with Brazil's largest corruption probe ever, according to a person close to the negotiations. The move could roil the nation's political class yet again. The testimony of the former industrialist, which is part of the deal, has the potential to implicate numerous politicians who allegedly took kickbacks from contractors as part of a years-long graft ring centered on Brazil's state-run oil company, Petroleo Brasileiro SA, known as Petrobras, according to The Wall Street Journal. SMAR EQUIPAMENTOS: Chapter 15 Case Summary ------------------------------------------ Chapter 15 Debtor: Smar Equipamentos Industrias Ltda., et al. Rua Augusto Zanini, 895, Jardim Sumare ZIP: 14170-550 Sertaozinho, Sao Paulo, SP Business Description: Smar Equipamentos Industrias Ltda. -- http://www.smar.com-- is a manufacturer of process control instruments in Brazil. Founded in 1974, the Company has developed a line of instruments for processes control for chemical and petrochemical, ethanol, food & beverage, mining, oil & gas, pulp & paper, sugar, and water & waste water industries. Chapter 15 Petition Date: February 28, 2019 Court: United States Bankruptcy Court Southern District of Florida (Miami) Chapter 15 Case No.: 19-12734 Judge: Hon. Robert A. Mark Foreign Representative: Alexandre Borges Leite Rua Aldo Focosi, 420 Bairro Presidente Medici - Unidade 52 Ribeirao Preto, Sao Paulo SP Brazil ZIP: 14091-310 Foreign Representative's Counsel: Leyza F. Blanco, Esq. SEQUOR LAW, P.A. 1001 Brickell Bay Drive, 9th Floor Miami, FL 33131 Tel: 305-372-8282 Email: lblanco@sequorlaw.com Estimated Assets: Unknown Estimated Debts: Unknown A full-text copy of the Chapter 15 petition is available for free at: http://bankrupt.com/misc/flsb19-12734.pdf =========================== C A Y M A N I S L A N D S =========================== OCEAN RIG: Oral Argument on Investor Appeal Scheduled for March 14 ------------------------------------------------------------------ Oral argument on an appeal by American investor Tally Mindy Wiener has been scheduled to take place on March 14, 2019, at 10 a.m., before the United States Court of Appeals for the Second Circuit. The investor runs a law practice and serves as Coordinating Editor, International for the American Bankruptcy Institute. She is seeking appellate review of injunctions entered in favor of Ocean Rig UDW Inc., a Greek offshore oil drilling enterprise, by the U.S. Bankruptcy Court for the Southern District of New York in the chapter 15 bankruptcy proceedings of Ocean Rig. For more information about the issues to be heard in the appeal, which is docketed under case number 18-1374, please visit http://tinyurl.com/y495h7dq The United States Court of Appeals for the Second Circuit holds oral arguments that are open to the public. The courthouse is located in downtown Manhattan at 40 Foley Square. It is footsteps away from City Hall and the Brooklyn Bridge and can be reached by public transportation. About Ocean Rig Nicosia, Cyprus-based Ocean Rig UDW Inc. (NASDAQ: ORIG) -- http://www.ocean-rig.com/-- is an international offshore drilling contractor providing oilfield services for offshore oil and gas exploration, development and production drilling, and specializing in the ultra-deepwater and harsh-environment segment of the offshore drilling industry. On March 24, 2017, Ocean Rig UDW Inc., et al., filed winding up petitions with the Cayman Court and issued summonses for the appointment of joint provisional liquidators for the purpose of the Restructuring. By orders of the Cayman Court dated March 27, 2017, Simon Appell and Eleanor Fisher were appointed as the JPLs and duly authorized foreign representatives, and the Cayman Provisional Liquidation Proceedings were commenced. Simon Appell and Eleanor Fisher of AlixPartners, LLP, in their capacities, as the joint provisional liquidators and authorized foreign representatives, filed for Chapter 15 protection for Ocean Rig and its affiliates (Bankr. S.D.N.Y. Lead Case No. 17-10736) on March 27, 2017, to seek recognition of the Cayman proceedings. The JPLs' U.S. counsel are Evan C. Hollander, Esq., and Raniero D'Aversa Jr., Esq., at Orrick, Herrington & Sutcliffe LLP, in New York. * * * On Sept. 15, 2017, the Grand Court of the Cayman Islands sanctioned the schemes of arrangements of the Company and its subsidiaries, Drill Rigs Holdings Inc. ("DRH"), Drillships Financing Holding Inc. ("DFH"), and Drillships Ocean Ventures Inc., ("DOV," and together with UDW, DRH and DFH, the "Scheme Companies"). The terms of the restructuring have therefore been approved by the Cayman Court. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Implements IMF's Enhanced e-GDDs System ----------------------------------------------------------- The Dominican Republic has implemented the recommendations of the IMF's Enhanced General Data Dissemination System (e-GDDS) by publishing essential data through the National Summary Data Page (NSDP). The e-GDDS was established by the IMF in 2015 to support improved data transparency, encourage statistical development, and help create synergies between data dissemination and surveillance. The NSDP is a national "data portal" that serves as a one-stop publication vehicle for essential macroeconomic data on the national accounts, government operations and debt, monetary and financial sector, and balance of payments. The NSDP is hosted by the Central Bank of the Dominican Republic, utilizing the Statistical Data and Metadata Exchange. A link to the Dominican Republic's NSDP is available on the IMF's Dissemination Standards Bulletin Board. The NSDP contains links to statistics published by the Central Bank, the Ministry of Finance and the National Office of Statistics. Publication of essential macroeconomic data through the NSDP will provide national policy makers and domestic and international stakeholders, including investors and rating agencies, with easy access to information critical for monitoring economic conditions and policies. Making this information easily accessible in both human and machine-readable formats will allow users to have simultaneous access to timely data and bring greater data transparency. Louis Marc Ducharme, Chief Statistician and Data Officer, and Director of the IMF's Statistics Department, welcomed this major milestone in the country's statistical development. "I am confident that the Dominican Republic will benefit from using the e-GDDS as a framework for further development of its statistical system." As reported in the Troubled Company Reporter-Latin America on Sept. 24, 2018, Fitch Ratings affirmed Dominican Republic's Long-Term, Foreign-Currency Issuer Default Rating (IDR) at 'BB-' with a Stable Outlook. DOMINICAN REPUBLIC: Industries Discard 30% Hike to Minimum Wage --------------------------------------------------------------- Dominican Today reports that Dominican Industries Association (AIRD) Vice President Circe Almanzar, said labor's proposed 30% increase to the minimum wage would put employers in a very "cumbersome" position, since in her view there are no conditions to do so. "The increase of 30% could cause a very cumbersome situation for the business sector, definitely there are no conditions to think about the salary increase of 30%," according to Dominican Today. When fielding reporters' questions after the presentation of the Industry and Commerce Ministry's Digital Productive Chaining Program, Almanzar said the capacity of each company and the methodology should be taken into account, the report notes. "The law of SMEs must be taken into account to restructure the salary, for which there is dialogue," the report quoted Mr. Almanzar as saying. As reported in the Troubled Company Reporter-Latin America on Sept. 24, 2018, Fitch Ratings affirmed Dominican Republic's Long-Term, Foreign-Currency Issuer Default Rating (IDR) at 'BB-' with a Stable Outlook. ============= E C U A D O R ============= INTERNATIONAL AIRPORT: Fitch to Rate Sr. Secured Notes 'B(EXP)' --------------------------------------------------------------- Fitch Ratings expects to assign a 'B(EXP)' rating to the fixed-rate senior secured notes (the notes) for up to USD510 million to be issued by International Airport Finance S.A. (the issuer) in connection with Corporacion Quiport S.A. (Quiport), the concessionaire of Ecuador's Aeropuerto Internacional Mariscal Sucre. The Rating Outlook is Negative. KEY RATING DRIVERS Summary: The rating reflects Quiport's strategic but somewhat modest traffic base, comprising mostly origin and destination (O&D) and leisure-oriented passenger traffic, a history of moderate volatility, and some competition from Guayaquil's Jose Joaquin de Olmedo International Airport, the country's second largest airport. They also reflect a tariff setting mechanism that allows for adjustments by local and the U.S.'s consumer price index and the rated debt's strong structural features such as no refinancing risk and the presence of additional liquidity, most notably, a 12-month offshore Debt Service Reserve Account (DSRA) and a capex reserve account covering staggered percentages of the next 18 months of capex needs. Quiport's ability to service its debt withstands domestic economic shocks, supported by the participation of international traffic-related revenues of over 50% of total revenue and the proven resiliency of the concession framework to adverse political environments. Break-even analysis show minimal dependency to domestic traffic and no dependency on international traffic growth. Average rating case debt service coverage ratio (DSCR) is 1.4x, while minimum DSCR is 1.1x in year 2032; maximum leverage, measured as net debt to cash flow available for debt service (CFADS), is 5.8x in year 2019. Credit metrics are commensurate with higher ratings according to Fitch's applicable criteria. An additional layer of comfort is provided by the eight-year tail before the concession's maturity. However, the rating is constrained by Ecuador's sovereign risk. The presence of a 12-month DSRA provides sufficient liquidity to preserve debt service should short lived exchange controls be imposed, supporting a rating of 'B' with a Negative Outlook, one notch above Ecuador's Country Ceiling (B-). The Negative Outlook on the notes reflects the Negative Outlook on Ecuador's Long-Term Foreign-Currency Issuer Default Rating (LT FC IDR) of 'B-'. O&D, Leisure-oriented Airport - Revenue Risk: Volume – Midrange The airport is located in Quito's metropolitan region, which accounts for 16% of the country's population and has a catchment area with 2.6 million people and an enplanement base of 5.2 million paying passengers (pax). The airport's traffic base is mostly O&D, with leisure-oriented exceeding business traffic. Traffic volatility is moderate with the largest historic peak to trough of 13.7% occurring between 2014 and 2016, with traffic yet to recover. Positively, traffic has presented a growth trend in 2017 and 2018. Carrier concentration in terms of revenue is low. There is some competition from Ecuador's second largest airport, Guayaquil's Jose Joaquin de Olmedo International Airport. Dual Till Regulation - Revenue Risk: Price – Midrange Regulated revenue tariffs readjusted according to Ecuador's and the U.S.'s inflations and commercial revenues have no tariff-setting restrictions. The framework does not include a price recovery model or pax decline adjustment mechanisms. Modern Infrastructure - Infrastructure Development/Renewal: Stronger Modern and well-maintained airport with detailed short- and long-term expansion plans. Future expansions are to be funded with internal cash flow generation, while the associated expenditures are smoothed through a rolling capex reserve. The concession framework does not provide a recovery of expenditures via rate adjustment. Fully Amortizing Debt Structure - Debt Structure: Stronger Senior secured debt composed of a single U.S. Dollar-denominated tranche with a fully amortizing repayment profile. Structural features include offshore debt service, O&M, maintenance and capex reserve accounts, as well as robust debt incurrence and dividend distribution tests. Financial Profile Rating case financial metrics are consistent with higher ratings, according to applicable criteria for airports with midrange attributes for volume and price risks. Leverage, measured as net debt to CFADS, is 5.8x at its maximum in year 2019 and decreases progressively. Coverage, measured as average DSCR is at 1.4x, while minimum DSCR is at 1.1x in 2032. PEER GROUP Quiport's closest peer is ACI Airports Sudamerica (ACI; BBB-/Positive), the indirect owner of Puerta del Sur S.A., who holds the concession for Montevideo's Carrasco International Airport in Uruguay. Both airports are the main international gateways to their countries, are O&D assets and share volume and price risk attributes, although Quiport is more exposed to leisure-oriented traffic than ACI is. Maximum leverage at Quiport is 5.8x in 2019, higher than ACI's 3.9x. ACI's average DSCR is 1.4x, the same as Quiport's. Sovereign risk is materially different for the two projects, with Quiport located in Ecuador (LT FC IDR: B-/Negative; Country Ceiling: B-) and ACI in Uruguay (LT FC IDR: BBB-/ Negative; Country Ceiling: BBB+). RATING SENSITIVITIES Future Developments That May, Individually or Collectively, Lead to Negative Rating Action: - A Negative Rating Action on Ecuador's Sovereign Rating; - Severe and prolonged traffic underperformance with respect to Fitch's Rating Case. Future Developments That May, Individually or Collectively, Lead to Positive Rating Action: - A Positive Rating Action on Ecuador's Sovereign Rating. TRANSACTION SUMMARY The issuer will use the net proceeds of the notes to (i) irrevocably purchase and assume all of Quiport's existing lenders' rights and obligations under the existing loans, and (ii) make new loans to Quiport (the new loans). Quiport will apply the proceeds of the new loans, together with funds in its existing accounts to repay in full all amounts outstanding under its intercompany loans, make a retained dividend distribution to its shareholders following completion of its corporate reorganization, and for certain general corporate purposes. The aggregate principal amount of the new loans will be in an amount equal to the aggregate principal amount of the notes. Aeropuerto Mariscal Sucre is Ecuador's main airport, with 48% of the country's offer (6.2 million seats), and acts as its main international gateway both for passengers and cargo. The airport is owned by Empresa Publica Metropolitana de Servicios Aeroportuarios - Municipality of Quito (EPMSA) and is currently operated by Quiport under a 35-year concession agreement; the airport will be handed back to EPMSA at the end of the concession in 2041. The concession included the administration and maintenance of the old airport until cease of operations; and the development, design, financing and construction of the new airport, as well as its operation, administration, and maintenance once completed and until January 2041. Quiport transitioned to the new airport in 2013, with operations in the old airport ceasing that same year. The new airport allows more efficient and safer operations (larger runaway and capacity for larger planes to operate), adaptable facilities (land available for expansions), and compliance with all international regulations. Fitch Cases Key Assumptions: -- Inflation Rate for Base Case (BC) and Rating Case (RC) in Ecuador: 2019: 0.5%; 2020: 1.5%; onward: 2.0% / year; -- Inflation Rate for BC and RC in the U.S.: 2019: 2.1%; 2020 onwards: 2.0% / year; -- International PAX Compounded Average Growth Rate (CAGR): 3.5% (BC); 1.3% (RC); -- Domestic PAX CAGR: 3.2% (BC); 1.0% (RC); -- OpEx: +3% (BC); +5% (RC); -- CapEx: +3% (BC); +5% (RC); -- Litigations Cost: 0 (BC); USD100 million amortized over 10 yearly payments of USD1 million (RC). Credit Metrics: -- Average DSCR: 1.7x (BC); 1.4x (RC); -- Minimum DSCR: 1.5x (BC); 1.1x (RC); -- Net Debt / CFADS: 5.7x (BC); 5.8x (RC). Break-even analysis is performed on each of the Quiport's main risk factors while using base case assumptions for the other variables; break-evens represent the compounded average growth or decrease rate of a single variable up until the year in which the transaction no longer supports additional stresses in the relevant variable. The additional liquidity in the transaction, mainly present in the expansion capex reserve account and the DSRA, provides enough support for it to withstand stresses in the key variables as well as short lived exchange controls. Break-even results and the corresponding year are: -- International pax Growth: -8% - 2031 -- Domestic pax Growth: -100% -- OpEx: +130% - 2020 -- CapEx: +350% - 2023 Security The notes will be secured for the benefit of the noteholders by a first-priority security interest in (a) all of the capital stock of the Issuer, (b) the issuer's rights under the new loans, (c) the Issuer's debt service payment account and DSRA and amounts on deposit therein, (d) all of the capital stock of Quiport, (e) all future subordinated indebtedness incurred by the Issuer and (f) any proceeds of the Issuer. ============= J A M A I C A ============= JAMAICA: Will be Good After IMF, Says EPOC Official --------------------------------------------------- Caribbean360.com reports that Economic Program Oversight Committee (EPOC) Co-Chair, Keith Duncan believes Jamaica is and will be in good stead to manage its affairs after the borrowing relationship with the International Monetary Fund (IMF) concludes later this year. "We will have sufficient [net international] reserves, our debt levels will be down, tax revenues are buoyant, and we will continue to run primary surpluses, so that our debt to gross domestic product [GDP] ratio can be reduced to 60 per cent in fiscal year 2025/26," the report quoted Mr. Duncan as saying. He said Government's first Supplementary Budget target of $378.1 billion, and was 10.1 per cent over the intake of $353.1 billion for the corresponding period in 2017; revenue and grants amounting to $448.8 billion, which exceeded the budgeted $437.3 billion by 2.6 per cent; and a seven per cent Central Government Primary Surplus out-turn of $107.7 billion, which surpassed the $68-billion PSBA target, and the Government's $809-billion first Supplementary Budget target for 2018, the report relays. The EPOC Co-Chair also indicated that capital expenditure, year over year, increased by $14.4 billion or 46.6 per cent from $31 billion between April and December 2017 to $45.4 billion for the corresponding period last year, the report notes. The report discloses that key among the monetary targets, Duncan further stated, are a nine-month non-borrowed reserves total of US$2.5 billion, which significantly exceeded the PSBA target of US$2.2 billion; and net international reserves amounting to just over US$3 billion. He also advised that the value of Jamaica's dollar vis-à-vis the United States dollar as at February 25, 2019, was J$131.02 to US$1, the report says. This, he said, reflected an appreciation of 1.9 per cent ($2.54), following a 6.56 per cent ($8.38) depreciation the previous month, the report notes. The EPOC Co-Chair said the overall strong performance enabled the Government to meet all eight macro-fiscal structural benchmarks, spanning November 2016 to December 2018, the report says. "The Government has also met the 14 structural benchmarks for public-sector transformation, public bodies and public-service reform through end-November 2018," Mr. Duncan indicated. The report notes that he advised that the sole outstanding PSBA structural benchmark is capping of the total stock of domestic arrears of seven public bodies at $6.4 billion during the program period, "which is being met on a monthly basis, to date, by the Government." The report relays that Mr. Duncan said based on these out-turns, coupled with the projected decline in the debt to GDP ratio to 96.4 per cent by the end of the 2018/19 fiscal year on March 31, and to 90.9 per cent at the end of 2019/20, "Jamaica is in a good place to be able to move on its own". He noted that the fifth PSBA review ends on March 8, with the final slated for June 2019, the report says. "So, we will be on our own and not in an IMF programme, according to statements from Prime Minister [Andrew Holness] and Minister of Finance and the Public Service [Dr. Nigel Clarke]," Mr. Duncan said, the report relays. The report discloses that the EPOC Co-Chair noted that successive Administrations have, since 2013, remained fiscally disciplined and prudent in negotiating Jamaica through the economic challenges experienced. Additionally, he said measures have been implemented and are being pursued to further consolidate the gains recorded, in efforts to resuscitate Jamaica's economy, the report notes. Notably, Mr. Duncan pointed out, is establishment of the independent Fiscal Council, slated to be up and running by the end of 2019, and affording greater autonomy to the Bank of Jamaica, through legislation, measures which are intended to ensure Jamaica "remains on track," the report discloses. He argued that debt reduction to 60 per cent of GDP will afford the Government increased fiscal space to channel greater resources into education, health, social transformation, and social intervention, thereby "spurring economic growth," the report adds. As reported in the Troubled Company Reporter-Latin America on Sept. 27, 2018, S&P Global Ratings revised its outlook on Jamaica to positive from stable. At the same time, S&P Global Ratings affirmed its 'B' long- and short-term foreign and local currency sovereign credit ratings, and its 'B+' transfer and convertibility assessment on the country. ===================== P U E R T O R I C O ===================== REMLIW INC: Case Summary & 3 Unsecured Creditors ------------------------------------------------ Debtor: Remliw Inc. aka Monte Idilio Inc. aka Motel Destiny PO Box 10 Hormigueros, PR 00660 Business Description: Remliw Inc. is a privately held company whose principal assets is a motel facility located at Carr 639 Km 2.1 Arecibo, PR 00612. Chapter 11 Petition Date: March 2, 2019 Court: United States Bankruptcy Court District of Puerto Rico (Ponce) Case No.: 19-01179 Judge: Hon. Edward A. Godoy Debtor's Counsel: Damaris Quinones Vargas, Esq. LCDA. DAMARIS QUINONES PO Box 429 Cabo Rojo, PR 00623 Tel: 787-851-7866 Fax: 787-851-1717 E-mail: damarisqv@bufetequinones.com Total Assets: $3,300 Total Liabilities: $2,776,090 The petition was signed by Wilmer Tacoronte Negron, administrator. A full-text copy of the petition containing, among other items, a list of the Debtor's three unsecured creditors is available for free at: http://bankrupt.com/misc/prb19-01179.pdf ===================================== T R I N I D A D A N D T O B A G O ===================================== LIAT: Facing Financial Problems Again ------------------------------------- Kim Boodram at Trinidad Express reports that regional air-carrier LIAT, operating as Leeward Islands Air Transport, is again in financial difficulty, this time facing shutdown in ten days unless it receives a cash injection of US$5 million. This was disclosed by Trinidad and Tobago Prime Minister Dr. Keith Rowley, who also said T&T is not likely to get involved again in the operational aspect of LIAT as Government's shares in the airline amount to some one per cent, according to Trinidad Express. LIAT, operating as Leeward Islands Air Transport, is an airline headquartered on the grounds of V. C. Bird International Airport in Antigua. It operates high-frequency inter-island scheduled services serving 21 destinations in the Caribbean. The airline's main base is VC Bird International Airport, Antigua and Barbuda, with bases at Grantley Adams International Airport, Barbados and Piarco International Airport, Trinidad and Tobago. * * * The Troubled Company Reporter-Latin America, citing Trinidad Express, on November 24, 2016, reported that the Barbados government defended the operations of the cash-strapped regional airline, LIAT, even as opposition legislators called for it to be stop being a financial burden on the island. Both Prime Minister Freundel Stuart and his Finance Minister, Chris Sinckler, defended the airline, whose major shareholders are Antigua and Barbuda, Barbados, Dominica and St. Vincent and the Grenadines. Mr. Stuart, speaking in Parliament, said despite the criticism the value of the airline should not be underestimated that the Antigua-based LIAT remains important to Barbados. According to the TCR-LA in May 8, 2015, the Daily Observer said that LIAT was attempting to lose excess baggage as part of measures to make the carrier "a smaller airline in 2015." In a document, signed by Director of Human Resources Ilean Ramsey, eligible employees were asked to opt to apply for voluntary separation or early retirement packages to avoid being made redundant, according to The Daily Observer. TCRLA reported on Dec. 2, 2014, citing Caribbean360.com, that chairman of the shareholder governments of the financially troubled regional airline LIAT, Dr. Ralph Gonsalves said while he is unaware of the details regarding any possible retrenchment of employees, the airline needs to deal with its high cost of operations. The TCR-LA on March 10, 2014, citing Caribbean360.com, reported that LIAT said it will take "decisive action" to deal with unprofitable routes as the Antigua-based airline seeks to make its operations financially viable. On Sept. 23, 2013, the TCRLA, citing Trinidad and Tobago Newsday, reported that there's much upheaval at the highest levels of LIAT -- the Board and the Executive. Following the sudden resignation of Chief Executive Officer Captain Ian Brunton, David Evans replaced Mr. Brunton as chief executive officer. ================= V E N E Z U E L A ================= PETROLEOS DE VENEZUELA: Ordered to Move Lisbon Office to Moscow --------------------------------------------------------------- Polina Ivanova and Maria Tsvetkova at Reuters report that Venezuelan President Nicolas Maduro has ordered state oil company Petroleos de Venezuela S.A. (PDVSA)'s office in Lisbon to be relocated to Moscow, Vice President Delcy Rodriguez said, a move she said was designed to help safeguard her country's assets. Moscow has backed Maduro in the face of a political challenge from opposition leader Juan Guaido, who declared himself interim president in January -- a move backed by most Western nations, according to Reuters. Mr. Rodriguez, explaining the decision to move PDVSA's office at a joint news conference in Moscow with Russian Foreign Minister Sergei Lavrov, said Europe had shown it was no longer able to guarantee the safety of Venezuela's assets, the report notes. She cited the Bank of England's reluctance to hand over her country's gold supplies as an example, and said Caracas was now determined to expand cooperation with Russia, the report discloses. The PDVSA office move corresponded with plans to expand technical cooperation in extracting oil with Russian oil companies Rosneft and Gazprom, she added, the report relays. "We are going to make industrial investments to produce everything we need in our country with the Russian Federation's help," said Rodriguez. "We (Venezuela and Russia) are strategic partners," she added. The decision to move the office to Moscow came after a source at Gazprombank told Reuters last month it would freeze PDVSA's accounts and halt transactions with the firm to reduce the risk of the Russian lender falling under U.S. sanctions, the report relays. The report notes that Mr. Lavrov told the same news conference that Russia had sent a first shipment of medical aid to Venezuela and that Moscow was also helping Venezuela with supplies of wheat. Russia has supplied 64,100 tons of wheat to Venezuela so far in the 2018/19 marketing season, data from Russia's SovEcon agriculture consultancy showed on Feb. 18, the report relays. Russia has accused the United States of trying to engineer an illegal coup to topple President Maduro and the prospect of his being ousted is a geopolitical and economic headache for Moscow, the report says. Russia, like China, has become a creditor of last resort for Caracas, lending it billions of dollars as its economy implodes, the report notes. Moscow has also helped its military and oil industry. Kremlin spokesman Dmitry Peskov said earlier that there were no talks at the moment between Maduro and President Vladimir Putin about Moscow lending Caracas more money, but that Russia was watching the situation closely, the report relays. "We're interested in continuing cooperation with Venezuela, especially since many of our companies are working on quite big projects there," the report quoted Mr. Peskov as saying. "We hope that these projects have good prospects, that there are prospects to expand them, and of course we hope our Venezuelan partners can overcome the internal political and economic difficulties they are facing as soon as possible," he added. As reported in the Troubled Company Reporter-Latin America on Aug. 24, 2018, S&P Global Ratings affirmed its 'SD' global scale issuer credit rating and 'D' issue-level ratings on Petroleos de Venezuela S.A. (PDVSA). VENEZUELA: Guaido Calls for Protests Ahead of Return ---------------------------------------------------- VOA News reports that Venezuela opposition leader Juan Guaido called on the Venezuelan people to take to the streets to coincide with his planned return after touring Latin American allies. "I'm announcing my return to the country. I am calling on the Venezuelan people to mobilize all over the country [March 4] at 11:00 am (1500 GMT)," Mr. Guaido wrote on Twitter, according to VOA News. The opposition leader is expected to reach Caracas March 4. He left the Ecuadorian coastal town of Salinas aboard an Ecuadorian air force plane after meeting with Ecuadorian President Lenin Moreno, the report notes. His travel plans have not been made public, but a spokesman said Mr. Guaido would be in Caracas in time for the Carnival season, which begins March 4, the report notes. Mr. Guaido has said he expects to be arrested upon his return. The report relays that Mr. Guaido, recognized by the U.S. and 50 other countries as Venezuela's interim leader, heads Venezuela's National Assembly. He used his authority to invoke the constitution to declare President Nicolas Maduro's leadership illegitimate because of election fraud and declare himself interim president, the report notes. Mr. Guaido met with U.S. Vice President Mike Pence and other regional leaders in Bogota, Colombia, and later traveled to Brazil and Paraguay, the report notes. The United States increased its pressure on Venezuela, imposing sanctions on six high-ranking security officials as well as revoking the visas of dozens of other high officials, the report says. The Trump administration said the sanctions were a response to Venezuelan military officials, who last weekend blocked an opposition-backed effort to bring food into the country, the report says. At one border point, aid trucks caught fire and several people died, the report adds. As reported in the Troubled Company Reporter-Latin America, S&P Global Ratings in May 2018 removed its long- and short-term local currency sovereign credit ratings on Venezuela from CreditWatch with negative implications and affirmed them at 'CCC-/C'. The outlook on the long-term local currency rating is negative. At the same time, S&P affirmed its 'SD/D' long- and short-term foreign currency sovereign credit ratings on Venezuela. S&P's transfer and convertibility assessment remains at 'CC'. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2019. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. . * * * End of Transmission * * *